After a Reset and Rebuild, This Ultra-High-Yield Dividend Stock Is Starting to Grow Again
Last year was a transitional period for W. P. Carey (NYSE: WPC). The diversified real estate investment trust (REIT) made a strategic decision to exit the office sector at the end of 2023. It took the company most of last year to complete that initiative.The REIT's office exit acted as a headwind last year. However, it has started to rebuild its portfolio with properties that have better long-term growth fundamentals. Because of that, its earnings and high-yielding dividend (6.1% current yield) have started to rise again. That return to growth positions the company to produce higher total returns for its investors in the future.W. P. Carey sold $1.2 billion of properties last year. Those divestitures included the office properties it didn't sell or spin off at the end of 2023 (by forming office REIT Net Lease Office Properties), the sale of a portfolio of self-storage properties back to the operating tenant, and some other noncore assets like several of its hotel operating properties. Continue reading
Last year was a transitional period for W. P. Carey (NYSE: WPC). The diversified real estate investment trust (REIT) made a strategic decision to exit the office sector at the end of 2023. It took the company most of last year to complete that initiative.
The REIT's office exit acted as a headwind last year. However, it has started to rebuild its portfolio with properties that have better long-term growth fundamentals. Because of that, its earnings and high-yielding dividend (6.1% current yield) have started to rise again. That return to growth positions the company to produce higher total returns for its investors in the future.
W. P. Carey sold $1.2 billion of properties last year. Those divestitures included the office properties it didn't sell or spin off at the end of 2023 (by forming office REIT Net Lease Office Properties), the sale of a portfolio of self-storage properties back to the operating tenant, and some other noncore assets like several of its hotel operating properties.
